ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
Home Uncategorized

U.S. Supreme Court broadens time limit for Administrative Procedure Act claims

July 8, 2024
Reading Time: 3 mins read
Fed report: Banking system remains strong, assessing of fintech risk ramps up

APA Statute of Limitations
Corner Post v. Board of Governors of the Federal Reserve System
Date: July 1, 2024

Issue: Does a plaintiff’s Administrative Procedure Act (APA) claim “first accrue” under 28 U.S.C. § 2401(a) when an agency issues a rule or when the rule injures the plaintiff?

Case Summary: In a 6-3 decision written by Justice Amy Coney Barrett, the U.S. Supreme Court ruled the APA’s six-year statute of limitations does not accrue until the plaintiff is injured by final agency action.

Under Section 2401(a), civil actions against the United States “shall be barred unless the complaint is filed within six years after the right of action first accrues.”

The North Dakota Retail Association, North Dakota Petroleum Marketers Association, and Corner Post (the retailers) sued the Fed in a North Dakota federal district court, seeking to invalidate Regulation II’s standard for reasonable and proportional interchange fees. Regulation II capped the interchange fee received by large issuers ($10 billion or more in assets) to 21 cents plus 0.05% of the transaction. It also allowed a one-cent adjustment if the issuer implements fraud-prevention standards. In 2014, in National Association of Convenience Stores v. Board of Governors of the Federal Reserve System, the D.C. Circuit reversed a lower court decision determining Regulation II violated the APA. However, the D.C. Circuit remanded the issue of the Fed’s treatment of transactions-monitoring costs, concluding the Fed must clarify its exercise of discretion. On Aug. 14, 2015, the Fed published the clarification for transactions-monitoring costs in the interchange fee standard (the clarification).

On April 29, 2021, the retailers filed a complaint raising a facial challenge to Regulation II as a violation of the APA which is contrary to law and both arbitrary and capricious. The Fed moved to dismiss based on the statute of limitations. The district court dismissed, finding the clarification did not constitute a final agency action to renew the statute of limitations; the statute of limitations began to run with the publication of Regulation II in 2011; and the retailers’ claims did not warrant equitable tolling. On appeal, an Eighth Circuit panel affirmed, ruling the claims were barred by the statute of limitations.

The Supreme Court reversed and remanded, ruling the statute of limitations for APA claims starts to run on the date on which the challenged agency action first injures the plaintiff, rather than the date on which a rule or order was promulgated. Writing for the majority, Justice Barrett interpreted 28 U.S.C. § 2401, which sets a six-year time limit that starts when a claim “first accrues.” The Court has long held that a claim “accrues” only after the plaintiff suffers the injury required to press her claim in court. The majority observed that this default meaning applies unless Congress has expressly indicated otherwise in the statute’s text, such as where Congress establishes a “repose” period tied to the date of the challenged action. The majority reasoned this reading was strengthened by language in other statutes authorizing judicial review of administrative action, where Congress explicitly tied claim accrual to the promulgation of a final rule. Accordingly, the majority proclaimed a cause of action does not become “complete and present” for limitations purposes until the plaintiff can sue and obtain relief.

The majority further rejected the government’s policy arguments, concluding the plain text controls and that the policy implications were overstated. The majority rejected the Fed’s argument that successful facial challenges filed after six years upset the reliance interests of those having long operated under existing rules. The majority emphasized pleas of administrative inconvenience never justify departing from a statute’s clear text.

In concurrence, Justice Brett Kavanaugh noted he agreed with the Court’s decision declaring APA claims accrue when the plaintiff is injured by the challenged agency rule. However, Justice Kavanaugh noted that the retailers can obtain relief because the APA authorizes vacatur of agency rules.  In dissent, Justice Ketanji Brown-Jackson cautioned that “even the most well-settled agency regulations can be placed on the chopping block.”

Bottom Line:  The Corner Post decision will litigation against regulatory agencies, including challenges to federal regulations dating back decades.

Document: Opinion

Tags: Banking Docket
ShareTweetPin

Related Posts

ABA files coalition amicus brief arguing FDIC’s CMP against CBW Bank violates Jarkesy

Seventh Circuit upholds FDIC’s in-house enforcement process

Uncategorized
September 1, 2026

In a unanimous decision, a Seventh Circuit panel ruled that the FDIC did not violate the Seventh Amendment by adjudicating an enforcement action seeking a prohibition order and civil money penalty.

Fifth Circuit rules SEC must fix stock buyback rule

Tenth Circuit affirms dismissal of APA challenge to SEC enforcement action

Uncategorized
September 1, 2026

A unanimous Tenth Circuit panel affirmed the dismissal of a lawsuit challenging the SEC’s enforcement of federal anti-money laundering reporting requirements against an affiliate.

FDIC posts sample docs to provide clarity into marketing, sale process of failing banks

Second Circuit rules AP7 has prudential standing to pursue Signature Bank securities claims

Uncategorized
September 1, 2026

In a unanimous decision, a Second Circuit panel vacated a New York federal court decision ruling that Sjunde AP-Fonden (AP7) lacked prudential standing to pursue securities fraud claims against KPMG and former Signature Bank officers.

OCC releases Q3 bank trading revenue report

Nine states sue OCC over escrow powers and preemption rules

Uncategorized
September 1, 2026

Nine states sued the OCC, alleging it exceeded its authority and violated the APA by issuing its Escrow Powers and Preemption Rules.

Eastern District of Michigan dismisses $2 million wire fraud suit against Fifth Third Bank

Eastern District of Michigan dismisses $2 million wire fraud suit against Fifth Third Bank

Uncategorized
September 1, 2026

The court refused to hold Fifth Third Bank liable for the wire fraud because Hegira could not identify any agreed-upon security procedure that the bank handled in a commercially unreasonable manner or failed to follow in good faith.

CFPB issues interim final rule for Libor transition

Ninth Circuit rules fixed dividend rate can serve as LIBOR Act benchmark replacement

Uncategorized
September 1, 2026

The Ninth Circuit reversed and remanded, ruling that the LIBOR Act does not require a floating replacement rate and permits a contract’s fixed-rate fallback to serve as a valid benchmark replacement when LIBOR is unavailable.

NEWSBYTES

IRS to issue final rule on auto loan deduction

September 4, 2026

Consumers share experiences with AI-enabled scams

September 4, 2026

Bank survey finds most middle-income renters view homeownership as out of reach

September 4, 2026

SPONSORED CONTENT

Taming AI Agent Sprawl: A Playbook for Consumer Lending

Taming AI Agent Sprawl: A Playbook for Consumer Lending

September 1, 2026
Grow Public Deposits Without the Operational Burden End Fragment

Grow Public Deposits Without the Operational Burden End Fragment

September 1, 2026
Could Your Bank Absorb the Hidden Cost of Running Legacy Systems?

Could Your Bank Absorb the Hidden Cost of Running Legacy Systems?

August 20, 2026
Why Your Systems Keep Slowing Down — and What to Do About It

The exam question a backup can’t answer

August 18, 2026

PODCASTS

Podcast: Banking the brave new world of college athletics

August 4, 2026

Podcast: Tactics for meaningful strategic planning

July 28, 2026

Podcast: Why it might be time to revisit a key FDIC ratio

July 23, 2026

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2026 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2026 American Bankers Association. All rights reserved.